Economic Concerns
The US national debt of $35 trillion, increasing by $1.9 trillion in less than a year despite record tax revenues and economic growth, is unsustainable and expected to grow by $16 trillion between 2024-2034.
The US government’s fiscal imbalance is exacerbated by ineffective tax hikes, stifling small businesses, and 20.4% accumulated inflation (50% for non-replaceable goods/services), leading central banks in China, India, Oman, and Japan to rebalance by buying more gold and less treasuries.
Investment Strategies
Investing in hard assets like real estate and gold is crucial to protect against the destruction of purchasing power caused by governments issuing more currency and increasing taxes.
The S&P 500 reaching all-time highs despite challenges indicates that market corrections should be viewed as opportunities to invest in equities and real assets.
Global Financial Trends
Central banks are buying record amounts of gold as they recognize the alarming fiscal reality of world reserve currencies like the dollar, yen, and euro, seeking to maintain stability and purchasing power of their local currencies.
The alternative to the US dollar as a world reserve currency could be gold or even currencies issued by technology giants, as long as they can maintain stability and purchasing power.